Reflections on the Draft Ethiopian Trade Policy

2006

Respublica Litereria , 2019

While Ethiopia has recorded significant achievements in GDP growth, it faces predictable armour of trials rife in poor nations with too few mechanism and wherewithal, while also wrestling with the perennial problem of sequencing policy reforms, all subject to doctrinal reins. Given the very slim boundaries for manoeuvre imposed by abject poverty, deficits and a complex interlace in its political fabric, getting the priorities right are the central issues to be ad-dressed. Using comparative analyses with other African nations that have ac¬ceded to WTO accords, the lecture delves into impact of WTO accession on businesses and the requisite preparatory basis of a reform pedestal on which the nation can be a winner in this game. Findings of the research undergird eloquent testimony of complexity and uncertainty theories and func-tioning economic models that Ethiopia can emulate, not only to accede to WTO revised acces-sion regimes, but also to compete successfully in the global arena; underpinning the fact that this can be complex, when reforms are subject to ideological therapy. Hence, managed restructuring of the public sector, establishing institutional capacity for policy analysis, formulation and coordination, regulatory capacity, advancing fiscal sustainability are gleaned as a panacea for change and transformation. Creating a merit based and metric civil service is a basic requirement for competing in the WTO arena to achieve higher allocative and productive efficiency, augmenting private sector share, improving public sector financial health and PPPs. Key words: WTO, Ethiopia, state right sizing, PPP, meritocracy, markets, private sector, regulation

2016

Respublica Litereria , 2019

While it is of fundamental importance that Ethiopia itself defines approaches to, and processes of, Global Trade Participation and Good Governance, it is also necessary that such approaches be synthesised with universal principles, which assure both peaceful Economic Contestation and Policy Participation. ------------------- While Ethiopia has recorded significant achievements in GDP growth, it faces predictable armour of trials rife in poor nations with too few mechanism and wherewithal, while also wrestling with the perennial problem of sequencing policy reforms, all subject to doctrinal reins. Given the very slim boundaries for manoeuvre imposed by abject poverty, deficits and a complex interlace in its political fabric, getting the priorities right are the central issues to be addressed. Using comparative analyses with other nations that have acceded to WTO accords, the lecture delves into impact of WTO accession on businesses and the requisite preparatory basis of a reform pedestal on which the nation can be a winner in this game. The World Trade Organisation-as well as every trade agreement since-has been predicated on the idea that economic practices in different nations would eventually converge. This has not happened. How will the world trade regime handle a large, increasingly powerful country such as China that apparently plays different rules? If the WTO has become dysfunctional because of the US-China unilateral action, it is because trade rules have overreached. A fair world trade regime would recognise the value of diversity in economic models. It should seek a modus vivendi among these models, rather than tighter rules (Rodrik, 2018). Findings of the research undergird eloquent testimony of complexity and uncertainty theories and functioning economic models that Ethiopia can emulate, not only to accede to WTO revised accession regimes, but also to compete successfully in the global arena; underpinning the fact that this can be complex, when reforms are subject to ideological therapy. Hence, managed restructuring of the public sector, establishing institutional capacity for policy analysis, formulation and coordination , regulatory capacity, advancing fiscal sustainability are gleaned as a panacea for change and transformation. Creating a merit based and metric civil service is a basic requirement for competing in the WTO arena to achieve higher allocative and productive efficiency, augmenting private sector share, improving public sector financial health and PPPs. Key words: WTO, Ethiopia, alterative mechanisms, WTO dysfunction, state right sizing, PPP, meritocracy, markets, private sector, liberalisation, regulation, Unlike national legal systems, there are precious few avenues to address judicial activism at the WTO. You pretty much have to gain consensus to change the agreements, or simply withdraw from the system. The first is nearly impossible, and the second would be-in the view of many-cataclysmic. Robert Lighthizer

European Union (EU) is second largest trade partners of Ethiopia accounting for 14.5% of Ethiopia's total trade just after China in 2013. EU exports to and imports from Ethiopia are slowly gaining momentum. Ethiopia is looked upon as important development assistance partners of EU in Africa. Still this holds true or there is any improvement in commercial trading relationship between Ethiopia and EU. Further, what will be the future of the bilateral and multilateral trade between Ethiopia and EU? In order to know the answer, we attempted to analyze the trend of trade between the two trade partners and then projected the potential of the future trade between them. Here we have applied projected growth rate formula to guess the volume of future trade between two trade partners. Further, what are the important factors responsible for the trade flows between them? To know this, we further attempted to correlate certain selected variables with total trade position of the Ethiopia with EU.

Zenith international journal multidisciplinary research, 2016

Ethiopia has adopted a free market economic policy in 1992, and in line with this has promoted private investment. With the introduction of market economy, Ethiopia has implemented a number of reforms including the privatization of state owned enterprises, liberalization of foreign trade, deregulation of domestic prices, and devaluation of the exchange rate. The Birr has been fairly stable undergoing a gradual devaluation from 6.8 Birr per U.S. Dollar. Ethiopia's exchange rate has remained fairly stable due to the government's appropriate monetary policies and considerable foreign exchange reserves. With its enormous resources, the country has untapped investment opportunities, huge market access and low cost of doing business. The country has excellent climate, fertile soil and huge domestic raw material base. Its location is strategic that makes it close to the lucrative markets of the Middle East, Asia and Europe.

Though the concept of Trade remedy laws flourished in comprehensive manner in 20 th century, its origin went backs to the 18 th century. It was in GATT 1947(after the demise of formation of international trade organization); the 1 st multilateral trade remedy law was effectively made to regulate international trade. And these also latter strengthened by the breakthrough move to successfully establish WTO in 1995. Today, about 164 independent nations are member to WTO (both poor and advanced economies). The main objects of the Trade remedy laws are to protect domestic industries from unfairly traded imports and sometimes, it will be imposed even if the trade is fair like in cases of import surge. Ethiopia is not a member to WTO though it has passed more than two decades having an observer status. Since, Ethiopia is not a member to WTO, trade remedy regimes of WTO is not applicable under Ethiopian scenario. That means, it is presumed that the country has to use other domestic legislations which deals about trade remedy issues. In order to deal with competition and trade issues, Ethiopia has enacted proclamation number 813/2013(A trade competition and consumer protection proclamation). Besides, in order to facilitate the smooth flow of international trade the country enacted customs proclamation (a proclamation no.859/2014.) This article will therefore critically examine trade remedy laws of Ethiopia in lights of its importance with a recommendation that Ethiopia as a non-WTO member country has to design and enact more comprehensive trade remedy laws that can be able to address practical problems rising out it.

2016